Recently, Bernanke seems to have come around to accepting that asset prices are important to monetary policy, breaking a long-held Fed orthodoxy, dating back to

Recently, Bernanke seems to have come around to accepting that asset prices are important to monetary policy, breaking a long-held Fed orthodoxy, dating back to Greenspan. Contrast his speech in 2002, where he outlines the"don't burst a bubble but clean up the aftermath" philosophy: http://www.federalreserve.gov/BoardDocs/Speeches/2002/20021015/default.htm http://www.federalreserve.gov/BoardDocs/Speeches/2002/200210... with this recent speech in October 2008: http://business.smh.com.au/business/bernanke-signals-new-approach-to-bubbles-20081017-52kv.html http://business.smh.com.au/business/bernanke-signals-new-app...